Textoy Posted November 19, 2007 Report Share Posted November 19, 2007 Because there are several threads asking how to determine Date of First Deliquency (DOFD), I put these posts together to demonstrate it. While I enhanced them to reflect the dunning letter process, they are based on information within the CDIAs CREDIT REPORTING RESOURCE GUIDE which the describes how the OCs and CAs are to enter the data as a Data Furnisher.Please note that the DOFD throughout this remains unchanged.Example of Reporting OC using a Collection Agency via AssignmentNote: An OC or CA can transmit file updates to a CRA monthly. This may take from a few days to a few weeks for the CRA to post the monthly Report.Is there a requirement for a them to report? NO. Only that if they do, it has to be accurate. They can report to just 1 CRA or all 4.OC Reporting (TILA and FCRA applies)Transaction CRA Status DOFD Date10/30/2003 Current N/A11/30/2003 30 days past the due date 11/30/200412/30/2003 60 days past the due date 11/30/200401/30/2004 Current N/ANote: During Jan/2004 Consumer caught payments up so DOFD reset.02/28/2004 30 days past the due date 02/28/200403/30/2004 60 days past the due date 02/28/200404/30/2004 90 days past the due date 02/28/200405/30/2004 120 days past the due date 02/28/200406/30/2004 150 days past the due date 02/28/200407/30/2004 180 days past the due date 02/28/200408/01/2004 Charged Off 02/28/2004Note: The OC can use an internal collections dept. If they do, then thatdepartment does not have to abide by FDCPA but does abide by FCRA. Thereporting by that dept in this case can still be listed as Collections on CRA.However, if the other dept goes by another name (i.e subsidiary with adifferent name) THEN, they would be considered to be a collection agency ANDthe FDCPA and FCRA applies.08/15/2004 - Account is assigned to collection agencyCollection Agency Reporting (FDPCA & FCRA applies)08/31/2004 - CA adds Collections TLTransaction Status on CA TL DOFD Date08/31/2004 Collection 02/28/200408/31/2004 - CA performs 1st Phone contact with Consumer09/01/2004 - CA Mails Dunning Letter Note: CA has to mail Dunning Letter within 5 days if:All requirements of 809 (a) WERE NOT included in initial phone contact or,Consumer requests the CA to mail the information.09/04/2004 - Consumer Receives Dunning LetterStart of Consumers 30 day timely DV period. Note: If 809(a) requirements were provided in initial phone contact, then the Start of Consumers 30 day timely DV period would have been the day of phone call. The Consumer COULD have requested DV at that point HOWEVER, it is better to have ALL correspondence in writting.09/20/2004 - Consumer Mails DV Letter09/25/2004 - CA Receives DV Letter09/26/2004 - CA uses SPECIAL update feature to update CRA record as disputedTransaction Status on CA TL DOFD Date09/26/2004 Disputed 02/28/200411/27/2004 - CA mails Validation.If the investigation/validation determined that incorrect Consumer was identified, then the TL would be deleted.Under current law, there is NO time limit that the CA has to meet for replying to the Consumers DV. They:Can not continue collection efforts and,Must keep the CRA account status as DISPUTED Under current law, the CA can still provide monthly status updates as long as the account status remains as DISPUTED.11/27/2004 - CA updates CRA status back to Collections.Transaction CRA Status on CA TL DOFD Date11/27/2004 Disputed 02/28/200412/01/2004 - Consumer receives validation12/18/2004 - Consumer agrees to a repayment plan. First payment is received by collection agency.Note: While DOFD of account does not change, some states my re-age SOL for a multi-payment repayment approach.Note: The FCRA Compliance/Date of First Delinquency does not change due to subsequent repayment agreements.12/30/2004 - CA Performs monthly update of TLTransaction CRA Status on CA TL DOFD Date12/30/2004 Collections 02/28/2004Note: This update reflects a balance decrease due to first payment01/18/2005 - Consumer makes 2nd payment01/30/2005 - CA Performs monthly update of TLTransaction CRA Status on CA TL DOFD Date01/30/2005 Collections 02/28/2004Note: Balance amount decreases due to payment.02/18/2005 - Consumer makes final payment02/19/2005 - CA Informs OC that debt has been satisfied02/28/2005 - CA Performs monthly update of TLTransaction CRA Status on CA TL DOFD Date02/28/2005 Paid Collection 02/28/2004Note: Balance amount is reported as zero.OC Reporting02/28/2005 - OC Performs monthly update of TLTransaction CRA Status on OC TL DOFD Date02/28/2005 Paid Charge Off 02/28/2004 Link to comment Share on other sites More sharing options...
Textoy Posted November 19, 2007 Author Report Share Posted November 19, 2007 Example of Reporting OC Selling to JDB who uses a Collection Agency via AssignmentNote: An OC, JDB, or CA can transmit file updates to a CRA monthly. This may take from a few days to a few weeks for the CRA to post the monthly Report.Is there a requirement for a them to report? NO. Only that if they do, it has to be accurate. They can report to just 1 CRA or all 4.OC Reporting (TILA and FCRA applies)Transaction CRA Status DOFD Date10/30/2003 Current N/A11/30/2003 30 days past the due date 11/30/200412/30/2003 60 days past the due date 11/30/200401/30/2004 Current N/ANote: During Jan/2004 Consumer caught payments up so DOFD reset.02/28/2004 30 days past the due date 02/28/200403/30/2004 60 days past the due date 02/28/200404/30/2004 90 days past the due date 02/28/200405/30/2004 120 days past the due date 02/28/200406/30/2004 150 days past the due date 02/28/200407/30/2004 180 days past the due date 02/28/200408/01/2004 Charged Off 02/28/2004Note: The OC can use an internal collections dept. If they do, then thatdepartment does not have to abide by FDCPA but does abide by FCRA. Thereporting by that dept in this case can still be listed as Collections on CRA.However, if the other dept goes by another name (i.e subsidiary with adifferent name) THEN, they would be considered to be a collection agency ANDthe FDCPA and FCRA applies.08/15/2004 - Account is SOLD to Junk Debt Buyer (JDB)08/30/2004 - OC Updates OC TLTransaction Status on CA TL DOFD Date08/30/2004 Charged Off/Balance 0 02/28/2004JDB Reporting (FDPCA & FCRA applies)Note: JDB may argue that FDCPA does not apply. For the purpose of this demonstration, I ASSUMED that the FDCPA does apply to a JDB.Note: JDB may or may not report to CRAs. You may only see CA reporting on your CRA.You could have a OC TL, a JDB TL, and a CA TL for the same account.The CDAI Metro-2 Reporting Resource Guide lists JDBs under Section THIRD PARTY COLLECTION AGENCY/DEBT PURCHASER/FACTORING COMPANY.These entities fall under Collections type activities not normal accounts. It shows a Debt Purchaser as AKA Factoring Company.This is not a law, rather just guidelines the CDAI has published. JDBs however, like to think of themseleves as OCs to confuse the issue. 08/30/2004 - JDB adds TLTransaction Status on CA TL DOFD Date08/30/2004 Collection 02/28/2004Note: Like an OC, the JDB may update status monthly to show an increase in Balance due to interest established under original contract with OC.09/15/2004 - JDB assigns account to collection agencyCollection Agency Reporting (FDPCA & FCRA applies)Note: CA can transmit file updates monthly. This may take from a few days to a few weeks for the CRA to post the monthly Report.Is there a requirement for a CA to report? NO. Only that if they do it has to be accurate.09/30/2004 - CA adds Collections TLTransaction Status on CA TL DOFD Date09/30/2004 Collection 02/28/200409/30/2004 - CA performs 1st Phone contact with Consumer10/01/2004 - CA Mails Dunning Letter Note: CA has to mail Dunning Letter within 5 days if:All requirements of 809 (a) WERE NOT included in initial phone contact or,Consumer requests the CA to mail the information.10/04/2004 - Consumer Receives Dunning LetterStart of Consumers 30 day timely DV period. Note: If 809(a) requirements were provided in initial phone contact, then the Start of Consumers 30 day timely DV period would have been the day of phone call. The Consumer COULD have requested DV at that point HOWEVER, it is better to have ALL correspondence in writting.10/20/2004 - Consumer Mails DV Letter10/25/2004 - CA Receives DV Letter10/26/2004 - CA uses SPECIAL update feature to update CRA record as disputedTransaction Status on CA TL DOFD Date10/26/2004 Disputed 02/28/200412/27/2004 - CA mails Validation.If the investigation/validation determined that incorrect Consumer was identified, then the TL would be deleted.Under current law, there is NO time limit that the CA has to meet for replying to the Consumers DV. They:Can not continue collection efforts and,Must keep the CRA account status as DISPUTED Under current law, the CA can still provide monthly status updates as long as the account status remains as DISPUTED.12/27/2004 - CA updates CRA status back to Collections.Transaction CRA Status on CA TL DOFD Date12/27/2004 Disputed 02/28/200401/01/2005 - Consumer receives validation01/18/2005 - Consumer agrees to a repayment plan. First payment is received by collection agency.Note: While DOFD of account does not change, some states my re-age SOL for a multi-payment repayment approach.Note: The FCRA Compliance/Date of First Delinquency does not change due to subsequent repayment agreements.01/30/2005 - CA Performs monthly update of TLTransaction CRA Status on CA TL DOFD Date01/30/2005 Collections 02/28/2004Note: This update reflects a balance decrease due to first payment02/18/2005 - Consumer makes 2nd payment02/28/2005 - CA Performs monthly update of TLTransaction CRA Status on CA TL DOFD Date02/28/2005 Collections 02/28/2004Note: Balance amount decreases due to payment.03/18/2005 - Consumer makes final payment03/19/2005 - CA Informs JDB that debt has been satisfied03/30/2005 - CA Performs monthly update of TLTransaction CRA Status on CA TL DOFD Date03/30/2005 Paid Collection 02/28/2004Note: Balance amount is reported as zero.OC Reporting03/30/2005 - OC Performs monthly update of TLTransaction CRA Status on OC TL DOFD Date03/30/2005 Paid Charge Off 02/28/2004 Link to comment Share on other sites More sharing options...
Textoy Posted November 20, 2007 Author Report Share Posted November 20, 2007 Example of DOFD vs DOLP by Reporting OCOC Reporting (TILA and FCRA applies)Transaction CRA Status DOFD DOLP Date10/30/2003 Current N/A 10/200411/30/2003 30 days past the due date 11/30/2004 10/200412/30/2003 60 days past the due date 11/30/2004 10/200401/10/2004 Consumer makes full catchup payment01/30/2004 Current N/A 01/200402/28/2004 30 days past the due date 02/28/2004 01/200403/10/2004 Consumer Makes 1 regular payment03/30/2004 30 days past the due date 02/28/2004 03/200404/30/2004 60 days past the due date 02/28/2004 03/200405/10/2004 Consumer Makes 1 regular payment05/30/2004 60 days past the due date 02/28/2004 05/200406/30/2004 90 days past the due date 02/28/2004 05/200407/30/2004 120 days past the due date 02/28/2004 05/200408/30/2004 150 days past the due date 02/28/2004 05/200409/30/2004 180 days past the due date 02/28/2004 05/200410/01/2004 Charged Off 02/28/2004 05/2004From this you can see:The 01/10/2004 payment brought the account current so, there was no DOFD to report.A payment was made 03/10/2004, it did not bring account current, so DOFD remained at 02/28/2004 but DOLP is now 03/2004A payment was made 05/10/2004, it did not bring account current, so DOFD remained at 02/28/2004 but DOLP is now 05/2004 Link to comment Share on other sites More sharing options...
pbpb Posted November 21, 2007 Report Share Posted November 21, 2007 http://debt-consolidation-credit-repair-service.com/forums/images/smilies/wavey.gif uh....will this be on the test?Seriously, this is very comprehensive and helpful. Thank you. I vote for a sticky! Link to comment Share on other sites More sharing options...
Textoy Posted November 21, 2007 Author Report Share Posted November 21, 2007 Example of DOLA vs DOLP vs DOFD by Reporting OCOC Reporting (TILA and FCRA applies)DOLA Monthly Monthly DOLP DOFD CRA Status Payment Balance 03/30/2004 $100.00 $924.17 03/30/2004 As Agreed04/30/2004 $100.00 $846.50 04/30/2004 As Agreed05/30/2004 $0.00 $866.96 04/30/2004 05/30/2004 30 days Late06/30/2004 $0.00 $887.91 04/30/2004 05/30/2004 60 Days Late07/30/2004 $300.00 $609.37 07/30/2004 As Agreed08/30/2004 $100.00 $524.09 08/30/2004 As Agreed09/30/2004 $0.00 $536.76 08/30/2004 09/30/2004 30 days Late10/30/2004 $100.00 $449.73 10/30/2004 09/30/2004 60 Days Late11/30/2004 $0.00 $460.60 10/30/2004 09/30/2004 60 Days Late12/30/2004 $0.00 $471.73 10/30/2004 09/30/2004 90 Days Late01/30/2005 $100.00 $383.13 01/30/2005 09/30/2004 120 Days Late02/28/2005 $0.00 $392.39 01/30/2005 09/30/2004 120 Days Late03/30/2005 $0.00 $401.87 01/30/2005 09/30/2004 150 Days Late04/30/2005 $0.00 $411.58 01/30/2005 09/30/2004 180 Days Late05/30/2005 $0.00 $421.53 01/30/2005 09/30/2004 Charge OffFrom this you can see:Since interest keeps accuring, DOLA keeps updating.The 07/30/2004 $300.00 payment brought the account current so, there was no DOFD to report.A payment was made 10/30/2004, it did not bring account current, so DOFD remained at 09/30/2004 but DOLP is now 10/30/2004A payment was made 01/30/2005, it did not bring account current, so DOFD remained at 09/30/2004 but DOLP is now 01/30/2005 Link to comment Share on other sites More sharing options...
lavs412 Posted November 21, 2007 Report Share Posted November 21, 2007 I vote for a sticky Link to comment Share on other sites More sharing options...
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